Larry Weidman Reading Material

~ Thursday, December 16 ~
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Seed stage investment bubble? | Don Dodge on The Next Big Thing “Is there a bubble in seed stage investing? Critics point to Twitter raising $200M at a $3.7B valuation, and Facebook being valued at $35 Billion, or Groupon at $6B valuation just 6 months after raising a $135M round at a $1.35B valuation as evidence of  a bubble. The Economist seems to think there is a bubble. Eye popping headlines, but the reality of seed stage investing is very different. Seed stage investing is down from previous years. Back in 2006 and 2007 Angel investments in early stage startups was around $26 Billion per year. Last year investments were just $17.6B, down about 33%. The first half of 2010 Angels invested $8.5B, down 6.5% from the first half of 2009. Here are the raw numbers from the Center for Venture Research at UNH. 2009    $17.6B    57,225 companies 2008    $19.2B    55,480 companies 2007    $26.0B    57,120 companies 2006    $25.6B    51,000 companies”

Seed stage investment bubble? | Don Dodge on The Next Big Thing

“Is there a bubble in seed stage investing? Critics point to Twitter raising $200M at a $3.7B valuation, and Facebook being valued at $35 Billion, or Groupon at $6B valuation just 6 months after raising a $135M round at a $1.35B valuation as evidence of  a bubble. The Economist seems to think there is a bubble. Eye popping headlines, but the reality of seed stage investing is very different.

Seed stage investing is down from previous years. Back in 2006 and 2007 Angel investments in early stage startups was around $26 Billion per year. Last year investments were just $17.6B, down about 33%. The first half of 2010 Angels invested $8.5B, down 6.5% from the first half of 2009.

Here are the raw numbers from the Center for Venture Research at UNH.

  • 2009    $17.6B    57,225 companies
  • 2008    $19.2B    55,480 companies
  • 2007    $26.0B    57,120 companies
  • 2006    $25.6B    51,000 companies”